UAE Journey and Tourism sector set to get well this yr, says WTTC

The World Journey & Tourism Council’s (WTTC) 2023 Financial Affect Analysis (EIR) in the present day reveals the UAE Journey & Tourism sector is projected to satisfy the 2019 peak this yr.

The sector is about to contribute AED 180.6 billion to the UAE economic system by the top of 2023, virtually matching the 2019 excessive AED 183.4 billion, just one.5% behind pre-pandemic ranges. This represents practically 10% of the overall economic system.

WTTC can be forecasting that the sector will create practically 7,000 jobs this yr, surpassing the pre-pandemic peak of 745,100, to succeed in greater than 758,000 employed by Journey & Tourism.

A glance again on final yr

Final yr, the Journey & Tourism sector’s GDP contribution grew greater than 60% to succeed in practically AED 167 billion, representing 9% of the nation’s economic system.

The sector additionally created greater than 89,000 extra jobs from the earlier yr to succeed in greater than 751,000 jobs nationally, surpassing 2019 ranges by an extra 6,000 jobs.

2022 noticed the return of worldwide travellers to the UAE, with India (13%), Oman (8%), Saudi Arabia (8%), and UK (7%) main as supply markets for worldwide arrivals.

In keeping with the information, in 2022, worldwide guests contributed AED 117.6 billion to the nationwide economic system, representing a year-on-year development of 65.3%, though 19% behind 2019 ranges.

When it comes to home spend, 2022 noticed a 35.7% year-on-year leap, reaching AED 46.9 billion, 10.6% above its pre-pandemic counterpart.

Julia Simpson, WTTC President & CEO, mentioned: “The nationwide Journey & Tourism sector is recovering at a speedy tempo, proving the UAE continues to develop in recognition amongst worldwide travellers. The UAE is residence to one of many world’s busiest and profitable airports, Dubai Worldwide, which acts as a gateway to the Center East.

“The long run for the sector seems to be optimistic. By the top of this yr, the sector’s contribution will degree that of 2019, and over the subsequent decade, development will outstrip the nationwide GDP and create greater than 114,000 new jobs, representing one in 9 jobs.

“Our current Cities EIR Report highlighted the attraction vacationer locations throughout the nation, comparable to Dubai and Abu Dhabi, proceed to carry for worldwide travellers. These cities have proven an unimaginable resilience and powerful management.”

What does the subsequent decade appear like?

The worldwide tourism physique is forecasting that the sector will develop its GDP contribution to AED 235.5 billion by 2033, representing 10.2% of the UAE economic system.

Over the subsequent decade, Journey & Tourism is about to make use of greater than 872,000 individuals throughout the nation, representing practically 12% of all jobs.

Center East

In 2022, the Center East’s Journey & Tourism sector contributed greater than AED 1.2 trillion to the regional economic system, 25.3% under the 2019 peak. By the top of this yr, WTTC forecasts the regional sector’s GDP contribution will attain greater than AED 1.5 trillion (U.S.$ 413.2 billion) and be inside touching distance of the 2019 highpoint.

In keeping with WTTC’s newest Financial Affect Report, the sector employed greater than 6.8 million individuals throughout the area final yr, a rise of 865,000 from the earlier yr, however nonetheless 8.7% behind the 2019 peak. The sector will practically get well the roles misplaced in the course of the pandemic by the top of this yr, solely 2% behind pre-pandemic ranges.

Over the subsequent decade, the Journey & Tourism sector is projected to succeed in a contribution of practically AED 2.5 trillion and make use of greater than 9.8 million individuals.